The Trump administration is reportedly preparing a 90-day ban on diesel exports, aimed at lowering energy prices, Politico reported on Wednesday, citing sources familiar with the matter. Following this news, U.S. diesel futures prices plunged more than 7% at one point. Reuters subsequently denied that the U.S. was preparing to implement the ban, leading to a recovery in futures prices, though they did not fully regain their losses.
U.S. Energy Secretary Chris Wright publicly stated on the same day that banning diesel exports "definitely won't work," warning that such a move would force refineries to cut capacity, thereby driving up gasoline and jet fuel prices. Interior Secretary Doug Burgum also warned last week that a ban could provoke retaliation from other countries. U.S. diesel prices are currently at historic highs, with the average price reaching $6.52 per gallon on Wednesday, up 76% from a year ago.
Trump administration considers 90-day diesel export ban, Energy Secretary publicly opposes it, stating it "definitely won't work," after earlier reports caused U.S. diesel futures to fall over 7% before being denied.
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